The bank with clean money continues creating positive impact

Total assets grew by 8.9% to $6.2 billion and customer deposits grew 10.8% to $5.1 billion in the six months to 31 December 2018. Profit for the period remains strong at $12.2 million.

According to Managing Director Damien Walsh, the results reflect a continued focus on staying true to the bank’s purpose and efforts underway to build awareness of the Bank Australia brand.

“We’re attracting the next generation of customers to the bank who are aligned to our strong value proposition of being a progressive, values based bank that always places the customer at the centre of our business.”

“With our Clean Money messaging we’ve started a conversation across Australia about the impact money and your choice of bank has on the world we live in.”

“Our financial performance across the past six months has been strong and we are pleased to be growing above system rates of growth in a low interest environment, while still offering very competitive pricing to our customers.”

“We also became the first customer owned bank in Australia to issue a sustainability bond with our three-year, $125 million bond. Not only is the bond helping us manage our funding needs, it is helping us finance more lending with a positive impact.”

“Just as pleasing was the recognition we achieved in late 2018 for our leadership in sustainability, winning our fourth Banksia Award” said Walsh

Summary of Bank Australia’s 2018-19 half year financial performance:

6 months to Dec-18

6 months to Dec-17

Change

Change

Net Profit after Tax

12.2m

13.3m

-1.1m

-8.5%

Net Interest Revenue

53.6m

50.8m

2.8m

5.7%

Net Interest Margin

1.79%

1.88%

-0.1%

-4.9%

Cost to Income

70.5%

67.6%

2.9%

4.3%

Return on Assets

0.4%

0.5%

-0.1%

-16.3%

Loans Funded (Year to date)

775.8m2

618.4m2

157.4m

25.5%

As at Dec-18

As at Jun-18

Change

Change

Assets

6.2b

5.7b

0.5b

8.9%

Customer Deposits

5.1b

4.6b

0.5b

10.8%

Gross Loans

5.0b

4.7b

0.3b

7.0%

Reserves

522.6m

510.2m

12.4m

2.4%

Capital Adequacy

16.07%

16.64%

-0.6%

-3.4%

1 The percentage change calculation is based on the actual whole amount2 Inclusive of internally refinanced loans